Binance, one of the largest cryptocurrency exchanges in the world, announced the launch of margin trading. The leverage does not exceed x3.

Binance users now have the opportunity of margin trading. The maximum leverage available to users of Binance is 3: 1 (the ratio of borrowed funds to their own).

A customer needs to open a special margin account in order to participate in margin trading. Before that, a user should pass a Personality Check (KYC) and make sure that his country of residence is not on the black list. It is also required to activate two-factor authentication. To open an account, one needs to activate this option in one's personal account dashboard.

Binance repeatedly reminds that margin is associated with risks of losses of all user's assets and customers are highly advised to invest cautiously..

“For all its upsides, margin trading does have the obvious disadvantage of increasing losses in the same way that it can increase gains. Unlike the regular spot trading, margin trading introduces the possibility of losses that exceed a trader's initial investment and, as such, is considered a high-risk trading method. Depending on the amount of leverage involved in a trade, even a small drop in the market price may cause substantial losses for traders,” Binance FAQ on margin trading reads.

Margin trading on Binance is currently unavailable for users from Iran, North Korea, Syria, Cuba, Crimea, Canada, Japan, South Korea, USA and its territories.

If user's margin level drops to 1.3, he will receive a Margin Call, which is a reminder that he should increase his collateral. If user's margin level drops to 1.1, then his position is automatically liquidated.